Bitcoin reached its highest market share since October 2021, after the sales wave created by the SEC’s lawsuit for some altcoins and caused a loss of value in many altcoins. Bitcoin’s market share in the crypto market cap rose to its highest level in nearly 20 months, signaling cautious sentiment in digital assets.
According to CoinGecko’s data, while Bitcoin was traded at 25 thousand dollars on Thursday, the market share of the largest cryptocurrency reached 45.8 percent in the market where there are more than 10 thousand cryptocurrencies. This was the highest market share rate since October 2021.
In lawsuits filed by the US Securities and Exchange Commission (SEC) against Binance Holdings and Coinbase Global in recent weeks, it was stated that some of the smaller cryptocurrencies were unregistered securities. The SEC’s complaint caused a wave of sales in the crypto market, with the thought that it could make it difficult to trade the cryptocurrencies in question.
Seeing Bitcoin As A Commodity Reduced Its Value Loss
U.S. officials view Bitcoin as a commodity, and this means that the biggest cryptocurrency is likely to be less likely to be affected by the sell-off wave that altcoins such as Binance’s BNB, Cardano’s ADA, and Solana’s SOL are strongly feeling. It is considered to have helped him get over it.
“Investors tend to keep their money off the table amid this regulatory backlash, especially when it comes to altcoins,” said Michael Safai, partner at Dexterity Capital. On the other hand, the Fed’s signals that further monetary tightening is likely after a pause in the interest rate hike cycle this month have put pressure on general confidence in crypto.
There Is A Risk Of Falling To 20 Thousand Dollars
Regarding Bitcoin’s recent price movements, IG Australia Pty Market Analyst Tony Sycamore said, “Given that Bitcoin has had difficulty getting back on its feet recently, the test of the 200-day moving average is approaching. In this context, it is essential to hold on to the 200-day average level as a closing.” “Otherwise, it is possible to experience a decline to the level of 20 thousand dollars,” he said.
Bitcoin options data from the Deribit crypto derivatives platform shows that there is significant concentration at the $24,000 level for June and September maturities and that this price will be an important test level. Bitcoin has partially recovered from last year’s crypto crash, but its 2023 rally is down 51 percent due to restrictive US regulations and reduced liquidity.